Help With a New Nominal Code

As a videographer I purchase a few new items from time to time, such as camera batteries, lights, camera accessories etc. For the purpose of analysing later what I am spending the most on I’d like to be able to add a new nominal code - ‘Camera Equipment’. Where would it be best to add this?

If its material amount items then use Plant & Equipment else create new nominal in P&L as Video Accessories

Thanks. I know that I can do that, I should have said that I’m just not sure if they are considered to be Purchases, Direct Expenses or Overheads.

How much they cost individually?
How long they should last?

I’m sorry but I don’t follow what you mean. all I’m asking is, for example, if I buy a camera battery is it considered to be a Purchase, Direct Expense or an Overhead? I can create a new nominal called Camera Accessories or whatever, but which of the above does it go under?

Overhead will do I guess

I have a similar question regarding tools & equipment. I’ve bought some small tools costing up to approx £350 each, a set of specialised containers to carry them in costing a total of approx £150, as well as accessories such as router bits costing approx £20 - £30 each. I’ve posted the original purchases of tools and containers as plant/machinery (nominal code 0020). Is this correct, and am I right in thinking the accessories go down as a direct expense in nominal code 6900?

Hi Jeremy, if the consumables you buy (i.e. camera batteries,lights etc) are for one specific job - and I strongly suspect they are not - then you would need to cost them to nominal 5000 (general purchases). The effect here would be to show the cost as deducted from turnover to give gross profit (in the p&l account). In your case I would treat such purchases as expenses/overheads and so costs would come off gross profit to give net profit. I run a gardening business and so if I need to buy turf to do a particular client’s new lawn, it will be used up in that job and so I would record it as a cost of sale expense (nominal 5000). On the other hand, when I buy equipment items, e.g. rakes, brushes, hedge cutters, then these will be used all the time so would be coded to an 82XX nominal (in the 7000 to 9999, overheads range), and come off gross profit. Bigger, more expensive items may well need to sit in the assets area of the chart of accounts (i.e. 00XX).
Hope this helps a bit.

Different accountants have different views on this from my experience. In general though, any tool purchases below around £3-500 is just recorded as a general purchase. Anything over this would possibly be an asset, but would depend on your accountant.

The trouble with keeping lots of small items in the assets nominals is the depreciation. Most small tools are not worth a great deal after 12 months of use so aren’t worth the hassle, hence the £3-500 rule of thumb.

He has probably managed to sort this over the last year!

I am a sole trader selling items on Ebay through an Ebay shop.
What nominal code should I use when accounting for photographic equipment and consumables like soft boxes, white paper, acrylic sheets and stands used to produce product images for Ebay?
Thank you.